Mayor: Tentative Agreement Struck to Buy Rec Center

City would pay Walker Custom Homes $2.5 million over 20 years with a 6 percent interest rate, Yorkville Mayor Gary Golinski said.

Yorkville has a tentative agreement to buy the for $2.5 million, which is about $1 million less than the appraised value and $1.5 million than the price in the original lease agreement.

City Council members could vote on the deal in about two months, Mayor Gary Golinski said. If ultimately approved, the city would pay the $2.5 million over 20 years to Walker Custom Homes, plus 6 percent interest, Golinski said.

“At that price and interest rate, we’ll have a good cushion for capital improvements,” Golinski said.

He also anticipated that the facility would run an annual surplus high enough to eventually cover the total deficit it has generated since the city began leasing the facility in 2008. The annual deficit was about $77,000 in Fiscal Year 2009, about $50,200 in Fiscal Year 2010, and about $68,000 in the most recent fiscal year.

Meanwhile membership has increased from 977 in November 2010 to 1,467 in November 2011.

In December, aldermen against continuing the lease with Walker Custom Homes – which cost the city a $100,000 penalty. The tentative sales agreement includes waiving that $100,000 penalty, Golinski said.

, the city could purchase the REC Center for about $4 million, continue the lease through 2018, or opt out of the agreement in July 2013. City leaders needed to inform the landlords, Walker Custom Homes, if they are going to continue or opt out of the lease by the end of December.

On Thursday, Golinski complimented Ron Walker of Walker Custom Homes.

“From Day One, all he’s wanted to do was help the community out,” Golinski said.

Still, Golinski said he expected the vote on the purchase agreement would be close.

“I think if Ron Walker were to give us the facility, it would still be a 4-4 vote,” Golinski said.

That means Golinski would be casting the tie-breaking vote.

Scratch on Patch March 09, 2012 at 07:30 PM
Glad you are making such candid remarks Mayor Golinski! --“I think if Ron Walker were to give us the facility, it would still be a 4-4 vote,” Golinski said. Great to see you speaking for 4 alderman through your assumptions. More tax dollars invested in private business; against private businesses.
Kibitzer March 10, 2012 at 05:13 AM
This is just too much! A mayor who loves to spend other peoples' money. Who cares if many of us taxpayers have to hope for the best when it comes to our financial futures? The system cannot be beat. No matter who we get out and vote for or against; no matter what the politicians promise while campaigning, the deceit is thick. I keep hoping that someone, someday will see what is really happening to the average citizen. The citizen who wants to keep their "head above water", and wants to live within their means. Yet, too many loud voices keep up their shrill demands for all they feel entitled to. The rest of us, who feel we might be entitled to some peace of mind in our latter days just get "thrown under the bus". One day, these same high-minded spenders of others money will find their created empires crumbling into dust. Their minds and hearts in despair, wondering what happened. I am looking forward to that day.......
D. Smith March 14, 2012 at 03:03 AM
Sounds like innuendo and hearsay. It has been said, say something enough, no matter how untrue it might be, people begin to believe that it is true. I suggest filing a FOIA before attempting to commit character assassination.
D. Smith March 14, 2012 at 03:12 AM
The article states that the deal has yet to be reached. The keys to good finance are to either buy something for less than its worth, or sell something for more than its worth. Have to evaluate the time value of money to make an informed decision, but hey, membership is up and that's a good thing.
Greg K April 11, 2012 at 03:14 PM
If this Rec Center is such a great deal why don't the city let someone else invest their money. If the city doesn't buy it what would that building be? Wasn't it a health club before we leased it? What else could it be, seems like we would still have a health club. Would the owner let it set empty and just pay the taxes? If the city buys it they don't have to pay the taxes but that means they don't get the taxes. If the city buys it and pays for it they will have 30 year old steel building full of water what happens when steel and water mix? Hard to see anyone investing their own money on this project but I bet the city will invest our money to get something we already had.


More »
Got a question? Something on your mind? Talk to your community, directly.
Note Article
Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors.What's on your mind?What's on your mind?Make an announcement, speak your mind, or sell somethingPost something
See more »